CABLE Competition Act Consumer Access to Broadband for Local Economies and Competition Act
Impact
If passed, HB3314 would remove the power of local franchising authorities to approve or deny sales of cable systems based on franchise renewals or revocations. The bill mandates that any transactions involving a franchise must be conducted at fair market value while excluding any value associated with the franchise itself. By easing the process for cable operators to transfer ownership, the bill aims to encourage market competition by making it more straightforward for operators to acquire and divest their cable systems without excessive regulatory hurdles.
Summary
House Bill 3314, known as the 'Consumer Access to Broadband for Local Economies and Competition Act' or the 'CABLE Competition Act', seeks to amend the Communications Act of 1934 by prohibiting franchising authorities from requiring approval for the sale or transfer of cable systems. This bill is part of a broader attempt to enhance competition in the broadband market and facilitate the sale of cable franchises, ultimately benefiting consumers by promoting better access to broadband services.
Contention
The bill has elicited discussions regarding the balance between state and local governance. Supporters argue that this deregulation will spur growth and innovation in the broadband market, giving consumers more choices and potentially leading to lower prices. However, critics voice concerns that such moves may undermine the oversight capabilities of local authorities, potentially resulting in reduced accountability for service providers. There are apprehensions that without local control, consumer interests might be sidelined in favor of corporate flexibility.